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SEC Filings

S-1/A
CHIPOTLE MEXICAN GRILL INC filed this Form S-1/A on 12/05/2005
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    Year Ended December 31, 2003 Compared to Year Ended December 31, 2002

        The table below presents our operating results for the years ended December 31, 2002 and 2003 and the related year-to-year changes:

 
  Year Ended
December 31,

   
   
 
 
  Increase/
(Decrease)

  % Increase/
(Decrease)

 
 
  2002
  2003
 
 
  (in millions, except percentages)

 
Restaurant sales   $ 203.9   $ 314.0   $ 110.1   54.0 %
Food, beverage and packaging costs     67.7     104.9     37.2   55.0  
Labor costs     66.5     94.0     27.5   41.4  
Occupancy costs     18.7     25.6     6.9   36.6  
Other operating costs     29.8     43.5     13.7   46.1  
General and administrative expenses     25.8     34.2     8.4   32.5  
Depreciation and amortization.     11.3     15.1     3.8   34.0  
Pre-opening costs     1.0     1.6     0.6   59.6  
Loss on disposal of assets     1.5     4.5     3.0   n/m *
Net interest income     0.3     0.2     (0.1 ) (35.6 )

*
Not meaningful.

        Restaurant Sales.    Of the $110.1 million year-to-year increase in restaurant sales, $48.0 million was due to comp store sales increases, $34.5 million resulted from additional sales in 2003 by 55 company-operated stores opened in 2002, and $27.6 million resulted from sales by 74 company-operated stores opened in 2003. Average store sales for 2003 increased 20.6% to $1,274,000 from $1,056,000 for 2002, driven primarily by comp store sales growth of 24.4% that reflected increasing nationwide awareness of our brand, which also enabled new stores to open with higher average store sales. A substantial majority of the comp store sales growth was due to an increase in the number of transactions.

        Food, Beverage and Packaging Costs.    Food, beverage and packaging costs increased because we used more ingredients and packaging as a result of comp store sales increases, increasing sales at 55 company-operated stores opened in 2002 that were not in operation for 12 full months in the first six months of 2003 and sales at new stores opened in 2003. As a percentage of total revenue, food, beverage and packaging costs increased to 33.3% in 2003 from 33.1% in 2002. This increase was largely due to cost increases for avocados and beef in 2003.

        Labor Costs.    The year-to-year increase in labor costs was due to the growth in our store base, as our average number of hourly employees increased to about 5,100 in 2003 from about 3,000 in 2002. The effect was significant in 2003, when we opened a large number of stores and experienced the full-year impact of staff hired for stores opened throughout 2002. As a percentage of total revenue, labor costs decreased to 29.8% for 2003 from 32.5% for 2002 as a result of improved employee efficiency resulting from an increase in the number of transactions, which did not require a corresponding increase in staff, and more effective scheduling of employee shifts.

        Occupancy Costs.    The year-to-year increase in occupancy costs was primarily due to an increase in rental costs resulting from the opening of new stores in 2003 and the full-year impact in 2003 of such costs for stores opened throughout 2002. As a percentage of total revenue, occupancy costs decreased to 8.1% in 2003 from 9.1% in 2002, largely as a result of the effect of higher average store sales on a largely fixed-cost base.

        Other Operating Costs.    The year-to-year increase in other operating costs was primarily due to the opening of new stores in 2003 and the full-year impact in 2003 of stores opened throughout 2002. As a percentage of total revenue, these expenses decreased to 13.8% for 2003 from 14.6% for 2002, largely as a result of the effect of higher average store sales on a partially fixed-cost base.

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